A Nucor electric arc furnace. Photo courtesy of Nucor
Here are summaries of the third-quarter 2022 reports from steel producers aligned closely with the steel framing industry.
Nucor Reports Earnings of $1.69 Billion
Nucor Corporation, a Charlotte, North Carolina, steel products manufacturer and Steel Framing Industry Association member, announced quarterly consolidated net earnings of $1.69 billion for the third quarter of 2022. By comparison, Nucor reported consolidated net earnings of $2.56 billion for the second quarter of 2022 and $2.13 billion for the third quarter of 2021.
Total steel mill shipments in the third quarter of 2022 decreased 9% as compared to the second quarter of 2022 and decreased 10% as compared to the third quarter of 2021.
The primary driver for the decrease in earnings in the third quarter of 2022 as compared to the second quarter of 2022 was the decreased earnings of the steel mills segment. The decrease in the steel mills segment earnings was caused primarily by metal margin contraction and reduced shipping volumes, particularly at our sheet and plate mills.
“We continue to believe that 2022 will be the most profitable year for earnings in Nucor’s history,” the Nucor release said. “As we approach the end of the year, we are seeing increasingly challenging market conditions amid economic uncertainty.”
Read the complete Nucor Q3 2022 release.
ArcelorMittal Reports Operating Income of $1.7 Billion
ArcelorMittal, Luxembourg, the world’s leading integrated steel and mining company, announced results for the three-months and nine-months period ended September 30, 2022. ArcelorMittal Dofasco is a member of the Steel Framing Industry Association.
Operating income was $1.7 billion in Q3 2022 vs. $4.5 billion in Q2 2022. Net income was $1.0 billion in Q3 2022 vs. $3.9 billion in Q2 2022.
A key development was the ground breaking on the company’s first transformational low-carbon emissions steelmaking project in Dofasco (Canada).
“The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure,” said Aditya Mittal, ArcelorMittal chief executive officer.
The short-term outlook for the industry remains uncertain and caution is appropriate, the ArcelorMittal release said.
Read the complete ArcelorMittal Q3 2022 release and analysts slides.
Cleveland-Cliffs Reports Net Income of $165 Million
Cleveland-Cliffs, a Steel Framing Industry Association member, reported third-quarter results for the period ended September 30, 2022.
Q3 consolidated revenues were $5.7 billion, compared to the prior-year third-quarter revenues of $6.0 billion. For the third quarter of 2022, the company recorded net income of $165 million compared with $1.3 billion for the same period in the prior year.
“Our third quarter results were affected by the delayed inventory impact of higher input costs and maintenance activities from prior periods,” said Lourenco Goncalves, Cliffs’ chairman, president, and CEO.
Third-quarter 2022 steel product sales volumes of 3.6 million net tons consisted of 33% coated, 29% hot-rolled, 15% cold-rolled, 6% plate, 5% stainless and electrical and 12% other.
Based on the current 2022 futures curve, which implies an average hot-rolled coil steel index price of $730 per net ton for the remainder of the year, the Company would expect its full-year 2022 average selling price to be approximately $1,370 per net ton.
Read the complete Cleveland-Cliffs release.
Steel Dynamics Ships 3.2 Million Tons of Steel
Steel Dynamics Inc. , one of the largest steel producers and metals recyclers in the United States and a Steel Framing Industry Association member, announced third quarter 2022 record steel shipments of 3.2 million tons from steady demand led by the construction industry, net sales of $5.7 billion, operating income of $1.2 billion and net income of $914 million.
“The strength in our steel fabrication operations meaningfully offset lower earnings in our flat rolled steel businesses, with realized flat rolled steel selling values declining almost 15% [in Q3],” said Mark D. Millett, chairman, president, and chief executive officer.
Net sales for the first nine months of 2022 increased 33 percent and operating income increased 51 percent to $4.3 billion, when compared to the same prior year period.
“Despite weaker flat rolled steel pricing, our order activity and backlogs remain solid,” said Millett. “We believe North American steel consumption will remain steady, and that demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing.”
Read the complete Steel Dynamics Q3 release.
U.S. Steel Reports Net Earnings of $490 Million
United States Steel Corporation, a Steel Framing Industry Association member with operations across the United States and in Central Europe, reported third quarter 2022 net earnings of $490 million. Adjusted net earnings for the third quarter 2022 was $516 million, which excluded the impact of restructuring and other one-time items.
The company said this compares to our all-time best record third quarter 2021 net earnings of $2,002 million. Adjusted net earnings for the third quarter 2021 was $1,638 million and excluded the impact of one-time items detailed in the reconciliation of adjusted net earnings table.
“We delivered another solid quarter and are on pace for our second-best financial year ever and a third consecutive year of record safety performance,” said David B. Burritt, U. S. Steel president and chief executive officer.
“Demand headwinds persisted through the third quarter. Across our integrated steelmaking mills, we responded quickly with footprint actions aligning supply with the current flat-rolled order book,” Burritt added.
Read the complete U.S. Steel Q3 2022 release.
Additional Resources
- Worthington Industries Sales Increase 82% to $1.4 Billion in Fiscal 2022 Q3
- Steel Prices are Down, Demand is Easing and Supply Is, Well, Improving
- Steel Framing Saves Money, Adds Extra Story on Student Housing Project